Who's eligible for a business car lease?

Want to know if you qualify for a business lease with us to get started on your dream fleet?

Whether you run a small local business or a large international enterprise, we’ve got business leases and fleets to make any CEO excited.

From levelling up your brand image and treating your employees well, to unlocking valuable tax benefits – leasing for your business could be the smartest decision to come out of your boardroom.

But you might be wondering: what actually qualifies you for a business lease?

We’ll walk you through everything you need to know to get you (and your fleet) firmly in the driving seat.

Who can take out a business car lease?

The short answer: pretty much any business. That includes sole traders, limited companies, partnerships, and Limited Liability Partnerships (LLPs).

We work with a wide range of funders and dealerships to source the best lease deals and cars for you.

That said, mainstream funders usually prefer businesses that have been established for at least two years and can provide full sets of accounts. A solid trading history can significantly boost your chances of credit approval. But we’ll go into more detail about this later on.

Which businesses aren’t eligible for a business lease?

We won't refuse to help any business looking for a lease, although it can be trickier with mainstream funders for new start-up companies due to limited credit history and insufficient financial documents.

This often means directors or owners need to provide personal guarantees, putting their personal assets at risk if the business fails to make payments.

New businesses (under two years old) might face an initial rejection, but that's not game over.

How old does your business have to be to lease a car?

Most funders prefer businesses that have been trading for two years or more – they like to see company accounts, director guarantors, and a solid trading history.

But this isn't set in stone. Funders assess each business lease application on a case-by-case basis.

So, you can still apply for a business lease even if your company is less than two years old. The key is being open and willing to provide your company's information when funders request it.

What’s our process for getting you a business car lease?

A business lease follows the same application process as any lease car, but we'll need a few extra details from you.

You'll need to provide:

• Company registration number
• Years of trading
• VAT number
• Trading address
• Directors' details
• Company bank details

If your business has been trading for over two years, you can simply submit the application. However, if your business is newer than that, funders will usually want to see your latest accounts too.

Applications typically take 24 to 48 business hours for approval, but if funders request additional information, this back-and-forth can cause delays.

If you’re ordering a fleet, there's often a discount for larger fleets. This discount varies by funder, vehicle type, and fleet size - there's no definitive minimum number of vehicles needed for fleet discounts.

How can you get a business car leases for employees?

Business owners or directors need to take out the business lease on behalf of their employees – that's how you unlock all the tax benefits and savings.

Once that's sorted, employees can pay for their car through their salary. This includes salary sacrifice schemes, where employees make their monthly lease payments from their salary before tax is deducted.

The beauty of this? It reduces their taxable income while they still get all the perks of leasing a shiny new car.

Why should you take out a business car lease?

There are many benefits to business car leasing, from tax savings to potentially decreasing the company’s carbon footprint.

You’ll save both time and money (both so valuable to companies) when taking out a business lease. This is what makes it such an attractive option for getting you and your team behind the wheel.

If your business is VAT registered, you can reclaim 100% of the car's VAT when the vehicle is used exclusively for work. If you use the car for both work and personal trips, you can reclaim 50% of the VAT.

That’s some big savings right there.

You also have the option to add maintenance packages to your business lease cars, which can be 100% reclaimed on VAT. These packages help to keep the unpredictable costs down.

Another tax benefit: monthly payments count as company expenses, reducing your tax bill.

With vehicles emitting less than 110g/km of CO2, 100% can be claimed back. If your cars emit more CO2, you can still claim 85%. But fuel, insurance and other running costs are all deductible either way.

This keeps your business’ money where it should be - in the business.

Along with tax savings, business leasing frees up capital.

With a smaller initial payment followed by monthly instalments, this works out cheaper than buying outright, plus there's no reselling hassle or depreciation stress.

FAQs on business leases

Who can take out a business car lease?

Whatever your business structure - limited company, sole trader, partnership, VAT-registered company, or LLP - you can benefit from business car leasing.

Can I get a business lease car as a sole trader or self-employed?

Yes, you can. Although some additional information may be required by the funders.

Which businesses aren’t eligible for a business lease?

The short answer? None. Every type of business can submit an application for a business lease.

Working with our range of funders means we've got plenty of options to explore – whatever your business setup, we'll find a way to get you and your fleet on the road.

Why should you take out a business car lease?

There are a whole host of benefits to business leasing, most notably the tax savings and freed-up capital for your business. And whilst also presenting your business in a professional and positive light with a brand-new car.

How do you take out a business car lease?

To take out a business car lease, simply find your dream lease and submit an application. A business lease requires different information than a personal lease, this will typically take 24 to 48 business hours to be approved.

Why are business car leases cheaper than personal car leases?

Business car lease costs and payments don't include VAT. This is because you can claim 100% of that back if you use the car exclusively for work, or 50% back when used for both personal and work purposes. With a personal car lease, VAT is included due to the inability to claim back these costs.